Wednesday, August 6, 2008

Marketing Challenges for Not For Profits

From time to time we do work for social services and community groups. So a recently released US report on not for profit marketing caught our eye.

The State of Nonprofit Marketing: A Report On Priorities, Spending, Measurement and The Challenges Ahead, produced by Lipman Hearne and the American Marketing Association (AMA), contains fascinating insights. Australian not for profits will recognise many similarities in the American findings.
  • Building awareness, generating revenue, branding and acquiring and keeping members were key marketing objectives for US not for profits.
  • Public relations, community relations and customer and member relations are considered the most effective strategies to build awareness and visibility.
  • “Being mentioned in the media is priceless, because it gains nonprofit organizations attention as well as third-party endorsement of their work."
  • Word of mouth marketing is important for donors, government agencies and other key audiences. The Report notes these groups need specific evidence from not for profits on how they are making an impact.
It seems that US not for profits find measuring their marketing efforts a tough ask:
  • The most measured marketing activity is events followed by revenue raising.
  • But evaluating the effectiveness of websites, media coverage and print advertising is not particularly well handled.
42% of organisations surveyed had only one person doing their marketing and even then the marketing area often shares responsibilities with other parts of the organisation.

And the biggest future challenges for US not for profits?
  • Building awareness/visibility.
  • Revenue generation.
  • Positioning/branding.
Sound familiar? And not just for community sector. We think many businesses would recognise these challenges.

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